The Cheapest Car Insurance in California in 2024

Like most states, California requires its drivers to have an active car insurance policy to legally drive. Our research found that the average state-mandated liability policy costs $113 per month in California, but many drivers have full-coverage policies, which cost a bit more — around $205 per month, on average.

But these broad averages aren’t necessarily the best indicator of what you’ll likely pay. After all, several factors influence car insurance rates, including your age, driving record, address, and more. But perhaps the most important factor is which company you choose.

In California, Clearcover offers cheaper policies than any other insurer, with average rates well below the statewide average — just $101 per month. Still, that doesn’t mean it’ll be the cheapest for every driver — the best company for one driver isn’t necessarily the perfect fit for the next.

Keep reading to learn more about how car insurance works in California, how much coverage you need, which companies are among the state’s best, and more.

Key Takeaways:

• California’s average car insurance policy costs around $159 per month.
• Clearcover offers the cheapest average rates across the state, at just $101 per month.
• You must have at least 15/30/5 liability limits to legally drive in California.

How Much Is Car Insurance in California?

As we mentioned, the average car insurance policy in California costs $159 per month, according to Compare.com data. But it’s worth noting that the coverage levels you choose play a big role in determining exactly how much you pay.

The table below showcases California’s average car insurance costs for two of the most common coverage types — liability and full coverage — as well as how they compare to the rest of the U.S.

If you’re looking for basic liability coverage, you can expect to pay around $113 per month in California, on average. The added protection of a full-coverage policy will set you back a bit more — around $205 per month, on average.

Still, these averages are just that — broad averages. California is home to more than 26 million licensed drivers, and rates can vary widely among different groups and driver types.

The best way to find out what you can expect to pay is by comparing personalized quotes from multiple companies. The companies listed in the next section are a great place to start.

California’s Cheapest Car Insurance Companies

With hundreds of insurance companies offering policies in California, it can be a chore to figure out which one has the best price for your unique profile. While several personal factors influence insurance rates, knowing which companies offer the cheapest policies on average can give you a leg up as you start shopping around for coverage.

The table below highlights the five companies offering the cheapest average policies in California, according to Compare.com data.

Our research found that Clearcover tends to offer the cheapest car insurance policies for many California drivers. Its average rates are just $101 per month — well below the statewide average of $159.

But remember, price isn’t the only thing worth considering when choosing a new insurance company. Factors like customer service ratings, coverage offerings, available discounts, and claims processing are also worth checking out.

With that in mind, we’ve highlighted a few of the state’s best insurers in the next section.

The Best California Car Insurance Companies in 2024

At the end of the day, no single insurance company is the best for everyone. Several factors affect how much you pay — your age, gender, driving record, ZIP code, and more — so one company may offer your neighbor great rates but charge you much higher premiums.

That might make it seem impossible to find the right insurer, but we’ve researched several of the top companies in California to help you know where to start.

The following insurers were chosen based on several criteria, including average rates, customer satisfaction scores, coverage options, and more.

Best for budget-conscious Californians: Clearcover

Average premium: $101 per month

Compare.com Rating: 3.37 out of 5

Clearcover boasts some of the best rates California has to offer, so it’s a great option for anyone looking to save on their premiums. This relative newcomer to the insurance industry boasts a unique tech-focused approach to car insurance, with a robust mobile app that lets you pay bills, file claims, chat with customer service, and even get roadside assistance.

Still, the company has experienced a few growing pains, and that tech-forward convenience can come at a price. Clearcover currently has more than 10 times the number of expected customer complaints, according to the National Association of Insurance Commissioners (NAIC), and it’s not yet rated by the trusted experts at J.D. Power.

Best for California’s military members: USAA

Average premium: $139 per month

Compare.com Rating: 4.91 out of 5

For decades, USAA has been helping military members and their families find highly rated, affordable car insurance. Not only does USAA have some of the best average rates California has to offer, but it also consistently scores among the best for customer service. In fact, the military-focused insurer boasts a higher customer satisfaction index score than any other insurer in California, according to J.D. Power’s most recent Auto Insurance Report.

That said, coverage is limited to military members, veterans, and their immediate families, so it may not be an option for many Californians.

Best telematics program in CA: Safeco

Average liability premium: $134 per month

Compare.com Rating: 4.59 out of 5

Safeco — like its parent company, Liberty Mutual — is known for its nationwide coverage and relatively affordable rates. In California, the insurer consistently comes in as one of the state’s cheapest car insurance companies, but safe drivers can save even more with its RightTrack telematics program. If you’re open to Safeco tracking your driving behavior, you can unlock an immediate 10% discount just for signing up for RightTrack. Consistent safe driving can save you up to 30% on your premiums.

But you should only sign up for RightTrack if you pride yourself on safe driving habits. Speeding, hard braking, and other riskier behaviors can lead to premium increases.

Cheapest State-Minimum Car Insurance in California

Coverage level plays a big role in how much you pay for car insurance, and liability coverage at the state’s minimum limits is the cheapest policy you can get. That said, rates can still vary widely from one company to the next, so it’s still important to compare rates from as many as possible.

With that in mind, we’ve highlighted the five companies offering the best state-minimum liability premiums in the table below.

We found that Clearcover offers the most affordable basic liability coverage in California. Its average rates are just $67 per month — well below the statewide average.

Just remember that these minimum liability policies only offer basic protection. If you want your own car protected, full coverage is the way to go. The following section breaks down which companies offer the best rates for this more robust type of coverage.

Cheapest Full-Coverage Car Insurance in California

While liability policies only cover injuries and damage you cause to other drivers, their passengers, and their property, “full-coverage” car insurance adds protection for your own vehicle. Alongside basic liability insurance, a typical full-coverage plan comes with comprehensive and collision coverages that protect your car from accidents, theft, vandalism, natural disasters, and more.

So, let’s take a look at which insurers offer the best rates for full coverage in California.

Clearcover offers the cheapest full-coverage policies in California, with average rates around $135 per month, according to Compare.com data.

That said, your age and driving history can both influence your rates significantly. The following sections cover exactly how each affects your premiums, as well as which companies offer the cheapest rates for different age groups and driving records.

Compare California Auto Insurance Rates by Age

Age is one of the most important factors affecting your car insurance rates. Typically, teens and young drivers pay the most of any age group because of their increased likelihood of causing an accident. Fortunately, rates tend to drop substantially around age 25 and continue to slowly become even more affordable throughout adulthood.

The table below shows exactly how much age affects average auto insurance rates in California, as well as which company has the cheapest average rate for each age group.

Cheapest car insurance for California teens: Clearcover

Teens tend to be more expensive to insure than any other age group, mostly because organizations like the Insurance Information Institute (Triple-I) found that they’re more likely to cause a fatal crash.

While the average California teen pays around $252 per month for car insurance, several companies offer rates much cheaper. We found that Clearcover offers the most affordable coverage for teenage drivers, with average rates of just $111 per month.

Cheapest car insurance for California seniors: Clearcover

Seniors usually enjoy some of the most affordable car insurance premiums of any age group. This is mostly due to their decades of driving experience and tendency to practice safe driving.

The average California senior in their 60s pays around $124 per month for car insurance, but Clearcover offers even better rates. Its average premium for seniors is just $96 per month, according to Compare.com data.

Compare California Auto Insurance Rates by Driving Record

Alongside age, your driving record has a significant effect on your car insurance premiums. All else being equal, drivers without a recent history of tickets or accidents get the best rates, but average premiums can increase substantially after just one infraction.

The table below shows how various infractions affect average car insurance rates in California, as well as which company offers the cheapest rates for common violations.

Cheapest car insurance in California after a ticket: Clearcover

It may not always lead to an insurance claim, but getting a speeding ticket generally leads to an increase in your car insurance premiums. In fact, our research found that the average driver experiences a 27% rate increase after just one ticket.

Still, savvy shoppers can find a great deal — if they choose the right insurer. In California, Clearcover offers the best rates for drivers with a recent speeding ticket — just $151 per month, according to our data.

Cheapest car insurance in California after an accident: Clearcover

Whenever you cause a car accident, your car insurance company has to pay to cover any injuries or damages. That usually means shelling out thousands to cover your mistake. In 2022, that meant more than $5,000 for a property damage claim and a staggering $24,000 for bodily injury, according to Triple-I.

Insurers need to recoup that money somehow, so they typically increase your rates substantially after you cause an accident — 34% on average, according to Compare.com data. Still, Californians who choose Clearcover can mitigate potential rate increases. After all, the insurer charges just $139 per month to cover California drivers with a recent at-fault accident.

Cheapest car insurance in California after a DUI: Clearcover

If a judge convicts you of driving under the influence (DUI), you can expect to face a slew of costly charges. Not only will you have to pay fines and court fees, but you can also expect to see your car insurance premiums increase the next time your policy renews. In fact, the average driver experiences a 50% rate increase after a DUI conviction, according to Compare.com data.

Still, that doesn’t mean you have to just accept sky-high rates. Many companies specialize in high-risk drivers, like those with a DUI, and offer them competitive rates, regardless of their past incidents.

In California, we found that Clearcover offers the cheapest rates for drivers with a DUI — just $126 per month, on average.

California Auto Insurance Requirements

California requires every vehicle parked or operated on state roads to have a certain minimum of auto insurance. The state’s minimum car insurance requirements are:

• $15,000 of bodily injury liability per person
• $30,000 of bodily injury liability per accident
• $5,000 of property damage liability

While California sets minimum coverage standards to drive, we recommend investing in more insurance than just the minimum. California is an at-fault state, meaning the driver who causes a car accident is also responsible for the expenses resulting from the accident.

In a severe accident, medical bills for one person can very quickly climb beyond $25,000, meaning you could be responsible for paying the difference out of pocket.

Consider investing in coverage with higher limits and possibly purchasing collision or comprehensive insurance as well. These coverages help pay the expenses you might face after an accident, a weather incident, or other damage to your vehicle.

Penalties for driving without auto insurance in California

The California DMV will cancel your registration if you fail to insure your vehicle. You must provide proof of insurance and pay a $14 fee to reinstate your registration.

Driving without auto insurance in California comes with steeper penalties. You may face fines of $100–$200 for your first conviction. The court may also decide to impound your vehicle, and you will have to pay storage fees, which can quickly add up. For your second conviction, the fine ranges from $200 to $500, and authorities may impound your vehicle again.

In addition to those fines, your local officials may implement penalty assessments, which could double or triple how much you pay.

SR-22 insurance in California

California requires certain high-risk drivers to file an SR-22 certificate proving their insurance meets the state’s requirements. If authorities catch you driving without insurance or demonstrating other high-risk driving behaviors, like reckless driving or driving under the influence, you must file an SR-22 certificate.

If your car insurance coverage lapses during those three years, your SR-22 period resets, and you’ll need to maintain coverage for another three years.

Some auto insurance companies won’t provide SR-22 certificates, so you may need to switch to an insurance company specializing in covering high-risk drivers. You can also expect your premiums to increase because of your risky driving history.

How to Get Cheap Car Insurance in California

Californians have access to several simple ways to get cheap car insurance. These are our top five tips.

1. Decide how much coverage you need. While it’s essential to have adequate protection in case of an accident, you don’t want to pay more for coverage you don’t need. Consider how much risk you’re comfortable with and what coverage limits you want and need. You may also want to explore options like a policy with a higher deductible, which can help keep your monthly payments down.
2. Choose your vehicle carefully. More valuable cars will cost more to insure, so if you’re considering leasing or buying a new car, consider how it will affect your insurance rates. You may save money by choosing a more affordable model or a used vehicle.
3. Focus on driving safely. Getting in a car accident and receiving traffic violations can increase your car insurance rates. Focus on practicing safe driving habits and consider enrolling in a telematics program if your car insurance company offers one. These programs can lower insurance premiums if you practice safe driving habits.
4. Maintain good credit. Your credit history can affect your car insurance rates, so focus on improving it. Pay your bills on time, and keep your credit utilization rate under 30% to get the best rates.
5. Comparison shop. Each car insurance company uses its own formula to calculate rates. Shopping around is the best way to ensure you get the lowest premium for your coverage needs.

California Auto Insurance FAQs

Want to know more about car insurance in California? Here are answers to some of the questions drivers like you ask most often.

Which company has the lowest car insurance rates in California?

Clearcover offers the cheapest average rates in California, according to Compare.com data. Its average rates are just $101 per month — well below the statewide average of $159.

What’s the No. 1 car insurance company in California?

It depends on your needs. There isn’t one single company that’s best for everyone, so consider which companies offer the best rates and highest customer satisfaction scores for drivers like you. We found that Clearcover, Safeco, and USAA are among the best options in California.

How much is car insurance in California?

Car insurance in California costs an average of $159 per month, according to Compare.com data, but the type of policy you choose plays a big role, as well. Liability-only policies cost an average of $113 per month, while full-coverage policies average $205 monthly.

How much car insurance does California require?

You must have at least $15,000 of bodily injury liability per person, $30,000 of bodily injury liability per accident, and $5,000 of property damage liability to drive in California.

Helpful Resources for California Drivers

• California Drivers Handbook
• California Insurance Requirements – California Department of Motor Vehicles (DMV)
• Submit a Claim – California Department of Transportation
• California Department of Insurance
• Get Insurance Help — California Department of Insurance

Data Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Sources:

1. California Department of Motor Vehicles, “Insurance Requirements,” accessed June 12, 2024.
2. California Department of Motor Vehicles, “About the California Department of Motor Vehicles,” accessed June 12, 2024.
3. Insurance Information Institute, “Facts + Statistics: Auto insurance,” accessed June 12, 2024.
4. Insurance Information Institute, “Facts + Statistics: Teen drivers,” accessed June 12, 2024.
5. J.D. Power, “2023 U.S. Auto Insurance Study,” accessed June 12, 2024.
6. National Association of Insurance Commissioners, “2019/2020 Auto Insurance Database Report,” accessed June 12, 2024.